Honda and Nissan take into account mutual manufacturing of automobiles, report says

Honda and Nissan are contemplating producing automobiles in each other’s factories as a part of their plan to deepen ties and probably merge, Kyodo News mentioned on Saturday.

Honda will take into account supplying hybrid automobiles to Nissan as a part of the plan, the report mentioned, with out citing the supply of the knowledge.

A merger of Honda, Japan’s second-largest automotive firm, and Nissan, its third-largest, would create the world’s third-largest auto group by automobile gross sales, behind Toyota and Volkswagen, making 7.4 million automobiles a 12 months.

The two automakers solid a strategic partnership in March to cooperate in electrical automobile growth, however Nissan has confronted monetary and strategic troubles in latest months.

As introduced, Honda, “Nissan and Mitsubishi Motors are within the technique of bringing collectively our strengths and exploring potential types of cooperation, however nothing has been determined but,” a Honda spokesperson mentioned when requested concerning the report.

Nissan declined to remark, saying the main points of the report weren’t primarily based on an organization announcement. Nissan is the highest shareholder in Mitsubishi Motors.

Kyodo mentioned Honda may use Nissan’s automotive manufacturing unit in Britain, because it now solely has factories for engines and bikes in Europe.

The transfer comes amid issues over how U.S. President-elect Donald Trump’s insurance policies might shake up manufacturing along with his guarantees of protectionist commerce insurance policies, the report mentioned.